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ShedDweller

How High Would Inflation Have To Be ..

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Before the Bank of England will raise interest rates ? 8% 10% 15% ? or is any rate of inflation always "Temporary" and "No reason for concern" ..

The BoE and others like the Fed like to suggest they will raise rates soon, but dare not because the 'recovery' is actually as fragile as eggshells. They are all risking inflation on the basis they argue there are temporary factors. Our inflation is already 5.3% on the proper RPI measure. It appears to be rising. CPI is 3.7% and I think rates wil be raised by years end anyway. But anything over 4% CPI is too high to overlook.

The markets are raising them anyway - book your fixed rate mortgage now as they will not be lower than now for many years.

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The markets are raising them anyway - book your fixed rate mortgage now as they will not be lower than now for many years.

+1

The BoE lost control of interest rates when they dropped theirs below 4%.

From that moment on, rates diverged. Worst still, banks now set their rates at BoE + 4% etc instead of BoE + 0.5%, so when BoE raise their rates to 4%, the results will be catastrophic.

Ultimately, the BoE don't have the power to cut interest rates... only raise them.

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Before the Bank of England will raise interest rates ? 8% 10% 15% ? or is any rate of inflation always "Temporary" and "No reason for concern" ..

I've been wondering the same for a while now. It does seem that even Cameron et al are committed to keeping interest rates 'low'. To me 'low interest' rates means 3.5-5%, not the ridiculous 0.5% we have now. Has anyone thought to ask the Japanese how their prolonged bout of low interest rates worked out for them? :o

If Brown (remember him?) was still in power I suspect he would just change the rules on how inflation is measured, or change the BoE parameters (ie set somewhere between 1.5-11% as a reasonable band before anything serious needs to happen, like raising interest rates).

It does feel that inflation, together with other economic nasties is just bubbling away beneath the surface and is all going to break free by the end of the summer. Who knows, maybe England will win the world cup and nobody will notice the economic catastrophe? :)

QB

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Bank of england as the issuer of all issuers can raise interest rates to 100% or turn all the paper money you have ever saved in your life into worthless cotton paper overnight...

look at Zimbawe look at weimar.... or on the other hand look at greece or argentina or ecuador

the Bank could offer to buy a peice of my sh1t for #10000000000 and what the fock would that do to rates ? the bank is willing to do this... oh sure yeah baby they do it through the SPVs I hear you say ...

they do it through the APS !

they do it through the SLS !

they do it through the BEAPFF !

the do it through the OMOs

They do it through the UKFI

They do it through the reverse repos!

True, This! —

Beneath the rule of men entirely great,

The pen is mightier than the sword. Behold

The arch-enchanters wand! — itself a nothing! —

But taking sorcery from the master-hand

To paralyse the Cæsars, and to strike

The loud earth breathless! — Take away the sword —

States can be saved without it!

4% ?

5% ?

-6% ?

playing with fire as Taleb puts it...

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They'll let it go hyper before even bothering to raise them slightly.

As said the BoE and elites have methods in which to profit massively from hyperinflation.

Bob Mugabe has done well...

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Before the Bank of England will raise interest rates ? 8% 10% 15% ? or is any rate of inflation always "Temporary" and "No reason for concern" ..

I think it's a question of how LONG inflation would have to be high, rather than how HIGH. I can't see them raising rates much (if at all) in 2010, but if inflation is still high next year they may feel they have to act.

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They'll let it go hyper before even bothering to raise them slightly.

As said the BoE and elites have methods in which to profit massively from hyperinflation.

Bob Mugabe has done well...

You really think the rich people of the country (bankers , bilderbergs etc) are just going to allow the government and BOE inflate away their wealth?

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Before the Bank of England will raise interest rates ? 8% 10% 15% ? or is any rate of inflation always "Temporary" and "No reason for concern" ..

I have always taken the BOE's comments, as well as the bond market opinion via Gilt yields, with an assumption of deception or stupidity (on their part). So the recent bout of inflation is "temporary"? According to these nincompoops, if we have 100% inflation for one year and then have inflation return to 2% YoY, there is no reason to raise interest rates. Never mind the fact that the cost of the loaf of bread has gone up from £1 to £2 in one year.... its only temporary see? They do not seem to figure that the impact of increased inflation above the rate of 2% (which seems to be the range docile idiots can pretty well accept the sneaky devaluement of their work tokens) actually means that people have less disposable income and actually feel that prices are rising, resulting in reduced consumption and a general shafting.

That rant over, I'd say that if we have until November and if we continue to see 5% inflation then the bond vigilantes will actually fill their pillow cases with door knobs and go on a belated rampage. With soveriegn selection picks becoming an issue (finally) for many fund managers we could see the UK being singled out sooner than later when it comes to the markets. So it is a matter of when rather than if...

Anyway... this is my insight... which gives no clear answer or any liability. I reserve the right to refer back to this post if I am correct as well as the right to edit this post to oblinion when international investors shower money on the UK because we have a Queen and talk rather posh.

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Guest The Relaxation Suite

Before the Bank of England will raise interest rates ? 8% 10% 15% ? or is any rate of inflation always "Temporary" and "No reason for concern" ..

I think about the US consumer prices inflation rate going from +3.8% in 2008 to -0.7% in 2009 and the next thought in my mind is not inflation.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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